Frequently Asked Questions
Things you always
wanted to know, but were afraid to ask.
- Why do I need to be pre-approved? Isn't a pre-
qualification good enough?
-
If you are buying a house, especially in today’s market,
where multiple offers on a house are the rule, not the
exception, a seller wants to be sure that when he holds the
house for you, he won’t have to worry about the deal falling
through due to you not being approved for a loan.
While a prequalification does provide some degree of
assurance that you will get a home loan, a pre-approval
provides the seller with the assurance that you are ACTUALLY
approved by the LENDER (the company controlling the money).
Being pre-approved also takes one of the major causes of
stress in buying a home out of the equation. |
- Why use a Mortgage Broker?
-
| In the old days, when interest rates where as high as 18%, a
borrower had very few choices as to what type of loan to
get. At that time, a bank was a perfectly fine option.
Within the past 15 years, the choices facing a borrower can
be mind boggling. There are adjustable rates, there are 5
year fixed interest only loans, there are loans with
negative amortization…PHEW! How can anybody decide what loan
is the right one? A mortgage broker, actually, let us
rephrase that; a HONEST mortgage broker can be invaluable in
the mortgage process. A good, honest mortgage broker will go
over your objectives for your new loan, and help you make an
educated decision when you finally do decide. In addition, a
broker has access to literally hundreds of different
lenders, and thousands of different loan programs. Based
upon your credit, income, and needs/wants, a mortgage broker
is in your corner to help you find the absolutely best loan.
We have one more incentive…if we don’t close your loan, we
don’t eat! |
- Should I refinance my mortgage?
-
There are many factors to consider when deciding whether to refinance your
home loan. First of all, what is your motivation? If you are looking to only
reduce your current interest rate, you need to make sure that the cost to do
so will be paid for by the savings you will get from lowering your interest
rate.
If you are looking to take money out of your home, you need to look at all
of the different options available. Many times, it makes more sense to leave
your current mortgage alone, and take out a second mortgage or home equity
line (HELOC) instead. One of our loan officers will go over all of your
options to help you make the best decision possible. |
How does TRiAD United make money on a zero
cost loan?-
| You know the old adage, “You get nothing for free!” It’s true with mortgages
as well. Essentially, the lender is willing to pay us to give you a slightly
higher interest rate. Oftentimes, it makes absolute sense to do this.
Sometimes, it may make sense to get a zero points loan. In this case, you
pay all of the associated fees (escrow, title, etc) with the exception of
our origination fee. In either case, whenever you are making decisions
affecting your home, it is imperative you make an informed decision. As
always, we are here to help you do just that. |
How can I improve my credit score?-
Five Ways To Improve Your Credit Score
1. Pay down balances on your current revolving accounts: By reducing the
balance without closing out revolving accounts your balance to credit limit
will be lowered and this will favorably impact your credit score. Do NOT
cancel your credit cards – this can actually cause your score to drop!
2. Bring any past due account current. Past due accounts, especially those
from the previous 12 months, will have a negative impact on your credit
score.
3. Avoid getting credit from finance companies. Cash loans from these
companies have a more negative effect on your score than does credit from
installment or revolving sources.
4. Have misinformation on your credit report corrected and updated.
Immediately notify creditors and the three major credit reporting bureaus of
any erroneous information in your credit report and have corrections made
immediately
5. Do not create unnecessary credit inquiries. Only have your credit run by
a creditor when you need to. Too many inquiries will lower your credit
scores.
Here's How Your Credit Score is Calculated
Data in your credit report is grouped in five areas; each having an impact
on your overall credit score. Your credit score (ranging from 350-850) is
based on the following factors.
Payment History
Amounts Owed
Length of Credit History
New Credit
Types of Credit Used |
35%
30%
15%
10%
10% |
|
What does a lender look at when approving a
loan?-
When looking at you as a borrower, underwriters look at the three “C’s” that
make up your situation:
1. CREDIT – Your credit history
2. COLLATERAL – The value of your property
3. CAPACITY – Your financial ability to repay the loan |
What is my loan-to-value?-
| Loan-to-value is merely the dollar amount of your loan divided by the dollar
value of the property you are purchasing or refinancing. |
How do I know how much equity I have in my
property?-
| Equity is calculated by subtracting the amount you owe on the property from
the current value of the property. |
Can I qualify for a loan if I have just come
out of
bankruptcy?-
| We have many loan programs available for
all types of credit worthiness. You may qualify for a loan just one
day after discharge of your bankruptcy. |
What is an impound account?-
| Each month you must make a payment to your lender to cover interest due and
some principal. If you would also like to pay a portion of your annual taxes
and insurance, you can deposit this money into a impound account and the
lender will pay the taxes and insurance for you on the due dates. |
|
|
